A new bank levy is to be introduced from January 2010, the chancellor revealed in today’s Budget.

George Osborne said he would introduce a bank levy from January 2011 which will be imposed on UK banks, building societies and UK operations of foreign banks.

The chancellor said this will generate around £2 billion in revenue a year.

Osborne noted that some commentators have favoured waiting until all countries in the G20 introduce a bank levy.

However, the chancellor added that waiting until this happened wouldn't be right or fair.

He said, ‘Banks should make a fair contribution to the risk they pose.’